USD is on the front foot during early Wednesday trading
FOREX
The US dollar is on the front foot during early Wednesday trading, gaining ground on other major currencies. The greenback is finding support as lawmakers in Washington seem unable to reach an agreement over the lifting of the debt ceiling. The standoff between Democrats and Republicans is likely to continue and, if unresolved, could have serious consequences for the US and global economy. Against this background, demand for the greenback is on the rise, as increasingly anxious investors seek refuge in the safe haven dollar. Meanwhile, Federal Reserve officials speaking in public alluded to the stickiness of inflation and refused to completely dismiss the possibility of additional interest rate hikes this year, further enhancing the dollar’s appeal.
Ricardo Evangelista – Senior Analyst, ActivTrades
The US dollar is on the front foot during early Wednesday trading, gaining ground on other major currencies. The greenback is finding support as lawmakers in Washington seem unable to reach an agreement over the lifting of the debt ceiling. The standoff between Democrats and Republicans is likely to continue and, if unresolved, could have serious consequences for the US and global economy. Against this background, demand for the greenback is on the rise, as increasingly anxious investors seek refuge in the safe haven dollar. Meanwhile, Federal Reserve officials speaking in public alluded to the stickiness of inflation and refused to completely dismiss the possibility of additional interest rate hikes this year, further enhancing the dollar’s appeal.
Ricardo Evangelista – Senior Analyst, ActivTrades